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Budget 2025: Tax Sops, Higher Deposit Insurance Can Offer Support to Banks
Mint Bangalore
|January 28, 2025
Banking is struggling to reinvent itself in the face of rapidly scaling fintechs
Banking is at the heart of any nation's growth. When democratised, it becomes a financial engine capable of uplifting the masses on a large scale. The Indian banking industry is currently at a significant crossroads.
It's struggling to reinvent itself in the face of rapidly scaling fintechs that are fast capturing the untapped customer segment. PwC's research shows that from FY21 to FY24, the number and value of loans disbursed by fintechs have grown by a CAGR of 81% and 46%, respectively. This growth has been aided by fintech entities harnessing technology to extend their reach, streamline operations through automation and enhance credit accessibility. These players have been offering a broad spectrum of loan products tailored to the diverse needs of borrowers—especially smaller borrowers, enabling financial inclusion.
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